I have lots of problems with the FCC, and you do a very good job of describing them.
Allocating the commercial broadcast spectra is not one of them. Calling the FCC’s regulation of the spectra (and anybody who supports the practice) “statist” is, for want of a better term, “knee-jerk.” The FCC needs to stick to what they were created for, in 1934.
But giving the right to determine who and under what circumstances the licenses are granted is a power that is easily abused, especially by a huge federal bureaucracy. The potential for bribes, kickbacks and cronyism is just too readily accessible.
Friends of Harry Reid stand a lot better chance of getting licences approved than friends of Ted Cruz or Sarah Palin.
Frankly I don't know why the FCC finally got around to shutting this station down, but I'm willing to bet someone with a lot of money and an interest in getting a station on that frequency had a lot to do with the decision.
You wanna bet it was Clear Channel?